What is the consequence if a Focus Cfo franchisee accepts employment with a Focus Cfo client?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
s CFO, to engage any person or entity other than Focus CFO,
or any of its respective affiliates, to perform the types of services provided by Focus CFO.
- 13.4. Employment with any Focus CFO Client. Focus CFO clients agree not to discuss any potential arrangements or to make offers of employment to any Focus CFO franchisee with whom they have met or worked with as part of their Focus CFO arrangement without first discussing the matter with Focus CFO. Franchisee agrees to notify Focus CFO, should any client that Franchisee has personally met for the first time since joining Focus CFO, makes an offer, either verbal or written to Franchisee. Further, Franchisee agrees that if Franchisee accepts such an offer with any Focus CFO client, Franchisee is not authorized to begin working directly for the client until either Franchisee or the Focus CFO client, pay directly to Focus CFO the termination fee which is set forth in the professional service agreement with the Focus CFO client. Franchisee acknowledges and agrees Focus CFO's damages and lost opportunities upon termination of the Agreement will be difficult to ascertain and that the fee which has been agreed to between the Focus CFO client and Focus CFO is a reasonable estimate thereof and does not constitute a penalty or forfeiture. Franchisee also acknowledges that the minimum termination fee outlined in these agreements with Focus CFO clients is Eighty Thousa
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, if a franchisee accepts an employment offer from a Focus Cfo client that the franchisee has personally met since joining Focus Cfo, the franchisee cannot begin working directly for the client until a termination fee is paid to Focus Cfo. This payment can be made either by the franchisee or the Focus Cfo client. The termination fee amount is determined by the professional service agreement between Focus Cfo and the client.
Focus Cfo clients agree not to discuss potential employment arrangements or make offers to Focus Cfo franchisees they've met through their Focus Cfo arrangement without first discussing it with Focus Cfo. This policy aims to protect Focus Cfo's interests and ensure they are compensated for the client relationship they facilitated.
The FDD also states that Focus Cfo acknowledges that the minimum termination fee outlined in these agreements with Focus CFO clients is Eighty Thousand Dollars ($80,000) and is subject to future increases. This fee is considered a reasonable estimate of Focus CFO's damages and lost opportunities upon termination of the agreement and is not considered a penalty. Focus CFO retains all other available remedies under the agreement in addition to this termination fee.